CreditAccess Grameen (CREDITACC) Q4 11/12 earnings summary

Executive summary

• FY 2011-12 was a consolidation year amid post-Andhra Pradesh sector disruption; operations adapted to RBI’s NBFC-MFI rules and maintained reported asset quality.

• Monthly profits began in February 2012; FY pre-tax loss was ₹1.71 crore, narrowing substantially by year-end.

Financial highlights

• Total revenue ₹62.19 crore vs ₹81.94 crore YoY; revenue from operations ₹59.53 crore vs ₹80.24 crore.

• Total expenditure ₹63.90 crore vs ₹78.15 crore; PBT loss ₹1.71 crore vs profit ₹3.79 crore, and PAT loss ₹2.90 crore vs profit ₹0.49 crore.

• Loan disbursements ₹595.3 crore vs ₹606.7 crore; closing portfolio ₹381.3 crore vs ₹250.5 crore, while average portfolio fell to ₹225 crore from ₹298 crore.

• Lower average portfolio and loan processing fees reduced revenue; processing fee fell from 2% to 1% under new regulations.

Outlook and guidance

• FY 2012-13 priorities: maintain higher average advances, diversify funding, lower operating costs and sustain profitability; increased interest income expected to partly offset margin pressure.

• Planned launches include micro-pension/NPS Lite and housing or home-improvement loans, with new offerings piloted for client fit, scalability and profitability.

• Customer-focused product development, stronger risk management and continued regulatory compliance are priorities for the coming year.